that increase the incentives of relatively more able workers, heterogeneity is unlikely to be as detrimental as commonly … perceived for incentives in organizations with multiple hierarchy levels. Heterogeneity of the workforce may even be optimal …This paper shows that the incentive effects of heterogeneity may be positive rather than negative in dynamic contests …

Bayesian Updating is the dominant theory of learning in economics. The theory is silent about how individuals react to …

identifies the behavioral response to rank incentives (i.e., the incentives stemming from an inherent preference for high rank …). We find that rank incentives not only boost performance in the related assignment, but also increase the average grade …: rank incentives make students engage more in peer interactions, which lead them to perform significantly better across the …

, an additionally provided monthly application decreases the length of spells by 4%. In line with theory, we further find …

that show, in a very general setting, that the choice between work effort and leisure under given linear incentives depends …

also extends to high-powered incentives, in a real work setting with paid workers. There is individual heterogeneity … crowding out due to low-powered incentives. High-powered incentives in the workplace tend to increase output, but it is unknown …

This paper studies how asymmetric information over inputs affects workers' response to incentives and self-selection at … and managers shape the response to incentives and self-selection at the workplace. …